📊 CAGR Calculator
CAGR shows the steady yearly growth rate that would turn a starting value into an ending value. It smooths out ups and downs, so it is useful for comparing investments or revenue growth.
How the CAGR Calculator works
The ending value is divided by the starting value, raised to the power of 1 ÷ years, and 1 is subtracted.
Step-by-step calculation
- 1Enter start value, end value and years.
- 2Divide end by start.
- 3Raise to 1 ÷ years and subtract 1.
Worked example
Revenue growing from $10,000 to $18,000 in 5 years: CAGR = (18,000 ÷ 10,000)^(1/5) − 1 = 12.47% a year.
CAGR Calculator examples
| Starting value ($) | CAGR |
|---|---|
| 5,000 | 29.2% per year |
| 7,500 | 19.14% per year |
| 10,000 | 12.47% per year |
| 12,500 | 7.57% per year |
| 15,000 | 3.71% per year |
Other inputs kept at the calculator's default values. Results calculated by this calculator.
Why use a CAGR Calculator?
Compare growth of investments or revenue over different time spans.
Important factors that can affect your results
- Smooths out volatility.
- Ignores added or withdrawn money.
- Start and end dates chosen.
Frequently asked questions
Is CAGR the same as average return?
No. A simple average of yearly returns ignores compounding and is usually higher than CAGR.
Can CAGR be negative?
Yes — if the ending value is lower than the starting value.
Related calculators
Last reviewed November 2026 · How we build and check our tools · Report a problem